In brief

Minister suggests a Tory split would be a price worth paying for Brexit deal with Labour

But Labour says there's been a breakdown of trust after the plan appeared in newspapers

Theresa May’s hopes of a breakthrough in Tuesday’s crunch all-party Brexit talks were dashed as Labour accused her of failing to negotiate in good faith.

She appealed to Jeremy Corbyn to “do a deal” after both parties lost ground in last week’s local elections as voters appeared to take revenge on them for the Brexit impasse.

In a move that would infuriate Eurosceptic Conservatives, the Tory negotiating team is set to unveil proposals for Britain to remain in a post-Brexit customs union until the next election.

Crunch time coming

A Tory source said Downing Street was upbeat about the chance of reaching an agreement with the Labour leadership.

“Tuesday will be the time when we know the likelihood of a possible deal,” the told i.

Jeremy Corbyn meets activists in Manchester after the local elections (Photo: Phil Noble/Reuters)

“A lot is about the details and the specifics, it’s about whether they decide something can be found that is acceptable to both sides. We’re optimistic we can.”

The Cabinet minister, Rory Stewart, even suggested that a Tory split would be a price worth paying for getting a Brexit agreement with Labour through the Commons.

But John McDonnell, the shadow Chancellor, told BBC1’s Andrew Marr Show that he did not trust the Prime Minister as she “blown the confidentiality” of the talks and “jeopardised the negotiations for her own personal protection”.

He accused her of an “act of bad faith” after details of the Tories’ offer to Labour over Brexit emerged in Sunday newspapers.

They include a comprehensive but temporary customs arrangement with the EU until the next general election, alignment with many European single market regulations on goods and enshrining the bloc’s workers’ rights regulations in British law.

‘Short term pain’

Mr Stewart, the new International Development Secretary, said his party needed to be willing to accept the “short term pain” of agreeing a Brexit compromise with Labour.

“I think to get Brexit done and to move this country on is worth an enormous amount,” he said.

He also warned that the party could lose four million voters if tried to “outdo” Nigel Farage by taking a harder line on Brexit.

But the Government’s concessions look unlikely to be accepted by Labour which favours a permanent customs deal and is pressing for guarantees that Mrs May’s successor cannot tear up any joint Brexit blueprint.

Jon Ashworth, the shadow Health Secretary, said ministers “haven’t really shifted” in the talks set up five weeks ago to find a cross-party solution to the Brexit deadlock.

He said the Tories were still seeking to “do their own trade deals” in services, which could mean American corporations winning NHS contracts. “I’m not prepared to countenance that,” he said.

Mrs May has indicated she wants the negotiations wrapped up by the middle of this week if common ground cannot be agreed.

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